New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Optimal Tax Strategies for Encompass Health Employees

Healthcare Provider Update: Healthcare Provider for Encompass Health Encompass Health Corporation operates as a leader in post-acute healthcare services, particularly offering rehabilitation services through a network of inpatient rehabilitation hospitals, outpatient rehabilitation clinics, and home health agencies. Their integrated care model emphasizes rehabilitation for patients recovering from illness or injury, including stroke recovery, brain injury rehabilitation, and orthopedic recovery. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are anticipated to rise significantly, particularly for those enrolled in Affordable Care Act (ACA) marketplace plans. Factors such as the potential expiration of enhanced federal premium subsidies and escalating medical costs could result in premium hikes of over 60% in some states. Reports indicate that nearly 92% of ACA enrollees may face out-of-pocket premium increases exceeding 75%, driven by high utilization of medical services and significant drug costs. Consequently, consumers will need to navigate these changes carefully to manage their healthcare expenses effectively. Click here to learn more

Looking towards 2026, Encompass Health employees should take a proactive approach to financial planning, ensuring they are prepared for potential tax changes and market fluctuations,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

With potential tax changes on the horizon and ongoing market shifts, Encompass Health employees should proactively review their financial strategies to ensure long-term stability,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

The potential impact of the 2026 tax changes on financial planning.
Recent market shifts and investment strategies for high-net-worth individuals.
Key considerations for protecting assets and avoiding tax scams in retirement.

As legislative landscapes shift, the current financial climate presents unique opportunities and challenges for Encompass Health employees. Should the 2017 tax legislation remain unchanged, we could see a general tax rate increase starting in 2026. This scenario underscores the need for diligent financial planning and enhanced vigilance among estate planners and investors.

The stock market, including indices like the S&P 500 and Nasdaq Composite, is showing signs of recovery after a prolonged downturn, contrasting with a slight dip in Trump Media & Technology Group. This market fluctuation coincides with a pivotal earnings announcement week, where approximately 150 S&P 500 companies are set to reveal their first-quarter outcomes.

Norway's largest bank has revised its investment approach in response to market volatility, scaling back on traditional heavyweights in favor of significant investments in renowned tech stocks outside the usual elite circle. This move suggests a strategic pivot towards diversification, crucial for managing large-scale investments.

Consider the implications of managing substantial assets, such as a $3 million brokerage account alongside a $3 million tax-deferred retirement plan. Strategic decisions might involve splitting an inheritance, with half potentially directed towards charitable causes or a beneficiary like a successful attorney daughter, demanding careful tax and estate planning considerations.

In tech, companies like Nvidia, leading in AI chip production, face intense competition that may challenge their client relationships, emphasizing the importance of continuous innovation and adaptability in the market.

For Encompass Health investors seeking stability amidst these volatile conditions, high-quality stocks offer both security and value, acting as a safeguard or counterbalance. It's critical to stay informed about market trends, impending legislative changes, and strategic asset management to make informed investment decisions.

As retirement approaches, Encompass Health employees must be vigilant against tax scams, particularly during tax season. The IRS warns that fraudsters often target seniors with fake IRS communications, using intimidation tactics like threatening calls and demanding immediate payment. The IRS assures that it does not contact taxpayers through social media, text messages, or emails for personal or financial information, helping individuals protect their assets and ensure security as they plan for retirement.

Exploring the potential impacts of the 2026 tax changes, recent market shifts following a downturn, and essential investment strategies for high-net-worth individuals is crucial. Understanding the competitive AI chip industry and the value provided by stable, high-quality stocks in a turbulent market is essential. Stay updated on significant S&P 500 company earnings that influence investment and estate planning decisions.

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Navigating the complex tax and financial landscapes is akin to steering a ship through challenging waters. Just as a skilled captain remains alert to changing currents and potential hazards, Encompass Health employees and retirees must be aware of tax law changes and market uncertainties. Protecting against tax scams is as critical as avoiding deceptive signals that can lead astray. Making informed choices is key to ensuring a secure and stable financial journey toward retirement.

Sources:

U.S. Bank Wealth Management. 'The Real Impact of the Tax Cuts and Jobs Act.' U.S. Bank , https://www.usbank.com/wealth-management/financial-perspectives/financial-planning/the-real-impact-of-the-tax-cuts-and-jobs-act.html . Accessed 31 Jan. 2025.

Gravelle, Jane G. 'Expiring Provisions in the 'Tax Cuts and Jobs Act' (TCJA, P.L. 115-97).' Congressional Research Service , 7 Nov. 2023, pp. 1-3, https://crsreports.congress.gov/product/pdf/R/R47846 . Accessed 31 Jan. 2025.

Jupiter Wealth Management. 'How High-Net-Worth Investors Can Navigate Market Volatility in 2025.' Jupiter Wealth Management , 27 Jan. 2025, https://jupiterwealth.com/investment-management/how-high-net-worth-investors-can-navigate-market-volatility-in-2025/ . Accessed 31 Jan. 2025.

Capital Group. 'Strategies for Dealing with Market Volatility.' Capital Group , https://www.capitalgroup.com/retirement/participant/basics/volatile-market/dealing-with-volatility.html . Accessed 31 Jan. 2025.

RBC Wealth Management. 'The Great Tax Sunset is Coming. Are You Prepared?' RBC Wealth Management , https://www.rbcwealthmanagement.com/en-us/insights/preparing-for-the-great-sunset-what-you-need-to-know-if-tax-code-provisions-expire . Accessed 31 Jan. 2025.

What is the 401(k) plan offered by Encompass Health?

The 401(k) plan offered by Encompass Health is a retirement savings plan that allows employees to save a portion of their salary on a tax-deferred basis.

Does Encompass Health offer a matching contribution for the 401(k) plan?

Yes, Encompass Health offers a matching contribution to help employees maximize their retirement savings.

How can employees enroll in the Encompass Health 401(k) plan?

Employees can enroll in the Encompass Health 401(k) plan through the company's benefits portal during the enrollment period or after they become eligible.

What are the eligibility requirements for the Encompass Health 401(k) plan?

To be eligible for the Encompass Health 401(k) plan, employees typically need to meet certain criteria, such as completing a specified period of service.

Can employees make changes to their contributions in the Encompass Health 401(k) plan?

Yes, employees can make changes to their contribution amounts in the Encompass Health 401(k) plan at any time, subject to plan rules.

What investment options are available in the Encompass Health 401(k) plan?

The Encompass Health 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

When can employees start withdrawing funds from their Encompass Health 401(k) plan?

Employees can start withdrawing funds from their Encompass Health 401(k) plan upon reaching the age of 59½, or under certain circumstances such as financial hardship.

Are there penalties for early withdrawal from the Encompass Health 401(k) plan?

Yes, there are typically penalties for early withdrawal from the Encompass Health 401(k) plan unless specific exceptions apply, such as disability or financial hardship.

What happens to an employee's Encompass Health 401(k) plan if they leave the company?

If an employee leaves Encompass Health, they can roll over their 401(k) balance into another retirement account, cash out, or leave the funds in the plan if allowed.

How often does Encompass Health provide statements for the 401(k) plan?

Encompass Health provides regular statements for the 401(k) plan, typically on a quarterly basis, detailing account balances and investment performance.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Encompass Health offers a comprehensive benefits package that includes both a 401(k) plan and other retirement options. In 2022, 2023, and 2024, Encompass Health continued to provide the Encompass Health Retirement Investment Plan, which allows employees to contribute up to 100% of their pay on a pre-tax basis, subject to IRS limits. The company matches 50% of the first 6% of employee contributions to the 401(k). There is also a Roth option available for those preferring post-tax contributions. Employees aged 50 or older are eligible for additional catch-up contributions (Encompass Health). In terms of eligibility for the 401(k) plan, all full-time and part-time benefit-eligible employees of Encompass Health can participate. The plan is administered by Charles Schwab Investments and offers a variety of mutual funds for investment. This is an employer-sponsored defined contribution plan (Encompass Health) (Encompass Health). Encompass Health employees also have access to an Employee Stock Purchase Plan (ESPP), which allows them to purchase company stock at discounted rates through payroll deductions. Although this is a voluntary program, it provides a supplementary method for employees to invest in the company

Restructuring and Layoffs: Encompass Health has recently undergone significant restructuring aimed at streamlining operations and reducing costs. In 2023, the company announced a series of layoffs affecting several departments to align with its strategic goals. This move is part of a broader trend in the healthcare sector to enhance operational efficiency amid economic pressures and rising costs. Importance: Given the current economic and investment climate, understanding these changes is crucial. The healthcare industry is adapting to economic uncertainties, and such restructuring efforts can have widespread impacts on employees and the overall market. Additionally, changes in company operations can influence investment decisions and tax implications.

Encompass Health offers stock options and RSUs to executives and key employees as part of their compensation package. These benefits are designed to align employee interests with the company's performance. Stock options allow employees to buy shares at a set price, while RSUs provide shares after certain conditions are met.

Encompass Health Careers: Check the company’s official careers page for specific details on health benefits. Encompass Health Benefits Information: Look for detailed benefits descriptions, plan options, and any recent updates in their employee benefits section. Glassdoor: Review employee reviews for insights on health benefits and any recent changes or updates. Indeed: Explore employee reviews and salary data, focusing on health benefits. LinkedIn: Look at company updates and posts that may include information on health benefits. Business Insider: Search for any articles related to employee benefits at Encompass Health. HR News Sites: Check specialized HR and benefits news websites for articles or reports on Encompass Health's employee health benefits. Healthcare-Related Terms and Acronyms: Health Savings Account (HSA): A tax-advantaged savings account used to pay for qualified medical expenses. Flexible Spending Account (FSA): An account that allows employees to use pre-tax dollars for eligible healthcare expenses. Co-Pay: A fixed amount paid by the insured for covered services. Deductible: The amount an employee pays out-of-pocket before insurance coverage begins. Premium: The amount paid for insurance coverage, typically monthly. Out-of-Pocket Maximum: The maximum amount an employee has to pay for covered services in a plan year.

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For more information you can reach the plan administrator for Encompass Health at 9001 Liberty Parkway Birmingham, AL 35242; or by calling them at (205) 967-7116.